Rescission and Reformation
Rescission and Reformation are two ways that an existing contract or written instrument can be altered. Both involve complicated legal issues and justifications and it is important to fully understand the changes that are being made and how they will impact your legal rights.
Rescission is the “unwinding of a transaction”. It is an equitable remedy that cancels an existing contract and restores the parties to their positions immediately prior to entering into the contract. This remedy can be sought for the following reasons: innocent or fraudulent misrepresentation, duress and/or undue influence, mutual mistake and/or lack of capacity.
Reformation is an equitable remedy that is sought by a party to a transaction whereby an existing contract or written instrument can be changed or edited to adequately reflect the understanding or the parties’ agreement.